Ultra Electronics on track as acquisitions offset political uncertainty

30th Apr 2015 15:22

In a one-line trading update, Ultra Electronics, a defence, security, transport and energy company, said its full-year results will be in line with expectations.At the time of its final results last month, chief executive Rakesh Sharma said that 2015 will benefit from acquisitions made in 2014 and from foreign exchange translation at current rates."However, set against the current market backdrop of uncertainty over the timing and feasibility of proposed US DoD budgets, together with election activity in both the US and UK, overall Ultra expects 2015 performance to be broadly stable," he added.Investec analysts gave a 'buy' recommendation on Thursday and said the update was "encouraging".The broker noted: "Ultra's focus on high end technological capabilities and niche markets combined with a cash generative business model and healthy balance sheet should help the group transition challenging markets in the short term and drive organic revenue and profit growth in the longer term."Shares were up 0.12% to 1735p on Thursday at 15:34.